The Third Payout Wave
Key Highlights
• FTX begins third round of creditor payouts Sept. 30, disbursing $1.6B across convenience and non-convenience classes.
• Retail creditors already received 120% of balances, yet many argue cash payouts fall far short of what crypto would be worth today.
Yello Paradisers! Defunct crypto exchange FTX announced Friday that it will release another $1.6 billion to creditors at the end of this month. The payments, part of the Chapter 11 reorganization, mark the third wave of distributions since the estate began liquidating recovered assets.
Convenience class creditors, largely retail traders, and non-convenience claimants will see payments land via BitGo, Kraken, or Payoneer starting September 30, with a one-to-three day transfer window.
The Irony of “Recovery”
While some small creditors were told they’d be “made whole”, even 120% of their original FTX balances, the rebound in crypto markets has turned that promise into a bitter pill. Bitcoin, Ethereum, and Solana are up triple digits since FTX collapsed in November 2022. For many, the “refund” feels more like being handed a bus ticket after your Ferrari was stolen.
Unsecured lenders, such as general claims and digital asset loan classes, have so far received 85% back. The bankruptcy estate, built on $15B in recovered assets, expects full recovery for those lenders, eventually. Assets sold include FTX’s stake in Anthropic, its Robinhood shares, and large token positions in SOL and SUI.
Retail Sentiment Turns Sour
Despite the payouts, frustration lingers. Former users argue the bankruptcy process values their holdings in fiat terms, not in the explosive gains those assets would have generated had they remained untouched. In other words: creditors got their money back, but lost their moonshots.
The estate insists its structure is “fair and equitable.” But for retail creditors, that fairness looks a lot like watching everyone else’s bags pump while they cash out at bear market lows.
MCP Final Word
FTX’s saga is a brutal reminder of counterparty risk: when you don’t control your keys, you don’t control your destiny.
MCP News Private will break down the numbers, asset sales, and creditor strategies that could shape the next billion-dollar bankruptcy story. For just $3/month, less than a haircut, you’ll be on the inside of the next unraveling, not on the outside watching your Ferrari turn into a bus pass.
